Vodafone Group has made payments worth $200 million to Vodafone Idea Limited (VIL), as liquidity support at a time when VIL has to pay more than Rs 580 billion in statutory dues
The amount was due in September 2020 under the terms of the contingent liability mechanism (CLM) between the Vodafone Group and Vodafone Idea.
As per the statement by Vodafone Group, it has accelerated this payment to provide Vodafone Idea with liquidity to manage its operations, and to support the approximately 300 million Indian citizens who are Vodafone Idea customers as well as the thousands of Vodafone Idea employees during this phase of emergency health measures, taken as a result of the COVID-19 pandemic.
Vodafone Group’s CLM came into force after the merger between Vodafone India and Idea Cellular was completed in August 2018. The company said in its statement that under the terms of the CLM, Vodafone Group is obliged to make payments to Vodafone Idea where amounts paid pursuant to the contingent liabilities of Vodafone India exceed those of Idea Cellular.
Earlier this week, Vodafone Idea submitted about Rs 13.67 billion to the government towards licence fee and spectrum usage charges (SUC) payment for the quarter ended March 2020.